MicroStrategy, the largest corporate holder of Bitcoin, plans to raise $1.75 billion through the issuance of 0% senior convertible notes to purchase more Bitcoin.
In a statement on November 18, Chairman Michael Saylor said the company “intends to use the proceeds from this offering to purchase additional Bitcoin and for general corporate purposes.”
MicroStrategy’s senior convertible notes carry a 0% coupon, meaning they will not pay regular interest to bondholders. The convertible notes are sold at a discount and will mature at face value if not converted by the maturity date, which is 2029 for MicroStrategy.
The notes also have a “senior” status to common stock, meaning that holders have priority in the event of a company bankruptcy or liquidation.
If it used all $1.75 billion to buy Bitcoin, MicroStrategy could buy about 19,065 more Bitcoins at current prices.
Data from Bitcoin Treasuries shows the company now holds 331,200 Bitcoins, worth more than $30.04 billion, after buying another $4.6 billion worth of Bitcoin on November 18.
This year, MicroStrategy has bought 142,050 Bitcoins, worth about $12.8 billion at current prices.
Michael Saylor’s Bitcoin investment strategy is currently up 133%, with an average purchase price of $39,292 per Bitcoin.
MicroStrategy (MSTR) shares rose nearly 13% to hit a new record high of $374.80 on Nov. 18, but were down 0.7% in after-hours trading, according to data from Google Finance.
Last month, MicroStrategy announced plans to raise $42 billion over the next three years to accumulate more Bitcoin under its “21/21” plan, including $21 billion in equity and $21 billion in fixed income securities.
Bitcoin is currently trading at $90,600, down less than 3% from its all-time high of $93,477 hit on Nov. 13, according to data from CoinGecko.
